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Retail

El Corte Inglés Reports 'Strong Recovery In Profitability' In 2022

By Robert McHugh
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El Corte Inglés Reports 'Strong Recovery In Profitability' In 2022

El Corte Inglés has reported revenue of €15.327 billion for its 2022 financial year (year ended 28 February 2023), which represents a 22.5% increase compared to 2021.

The privately-owned Spanish retailer said positive business momentum drove EBITDA up to €951 million, coupled with a strong recovery in profitability.

Highlights

The group, which operates the Hipercor and Supercor banners as well as its eponymous department stores, said it took advantage of the confidence earned in the investor community and among financial institutions to close a major refinancing agreement in March 2022 with more than 20 Spanish and international banks, locking in stable, cheaper, and longer-term financing.

Elsewhere, in January 2023, El Corte Inglés garnered the support of the European Investment Bank to finance its energy efficiency and innovation plans.

Retail Business

At €207 million, recurring net income for the year was above 2019 levels, the retailer added.

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Total net income amounted to €870 million, which is more than seven times higher than in 2021.

El Corte Inglés said all its business divisions registered growth, spearheaded by its retail business, where revenue increased by 7.8% year-on-year.

Read More: El Corte Inglés Trials New Supermarket Concept

Spring-Summer Campaign

In its financial statement, the group noted, 'As for the start of FY202023, it has been very positive on the back of a strong performance of the spring-summer campaign, which has driven sales growth across divisions.

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'Similarly, the group's robust balance sheet, with ample liquidity and a newly-optimised capital structure, provide increased flexibility to operate in a changing macroeconomic environment.'

Read More: Most Valuable Brands In Spain Revealed: Kantar

© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.

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